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NOTICE OF CHANGES IN TEMPORARY

NCUA INSURANCE COVERAGE FOR

TRANSACTION ACCOUNTS

All funds in a “noninterest-bearing transaction account” are insured in full by the National Credit Union Administration through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to members under the NCUA’s general share insurance rules.

The term “noninterest-bearing transaction account” includes a traditional share draft account (or demand deposit account) on which the insured credit union pays no interest or dividend. It does not include any transaction account that may earn interest or dividends, a negotiable order of withdrawal (“NOW”) account, money-market deposit account, and Interest on Lawyers Trust Account (“IOLTA”), even if share drafts may be drawn on the account. For more information about temporary NCUA insurance coverage of transaction accounts, visit www.ncua.gov.

Published June 22, 2011
This entry was posted in Latest News.

2 Comments

  • Charles Askegard says:

    Does this mean that our checking and savings account will not be insured after Dec. 30,2012?? What are the options??

    • Tim, CapEd says:

      Your accounts will continue to be covered by at least $250,000. The temporary coverage mentioned here deals with non-interest bearing transaction accounts (like our CapEd Tunes account). Non-interest bearing accounts are fully insured (with no limit) through Dec. 31, 2012. After Dec. 31, 2012, those accounts are set to go back to being insured to the standard amount of at least $250,000.

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